MicroStrategy Inc is running full pelt as spending on business intelligence software accelerates as companies endeavor to find out more about their e-commerce customers and seek better competitive advantage from their data.
MicroStrategy reported third quarter net income up 97% at $3.8m over $1.92m last time on revenue which climbed 102% to $54.6m compared with $27m. Earnings per share were $0.09, a penny better than First Call’s average of analysts’ estimates. At the nine month mark net income rose 158% to $8.8m over $3.4m on revenue which rose 92% to $135.9m over $70.6m
MicroStrategy says that as the market has consolidated it now faces just two or three competitors in the business intelligence market from 25 in 1994. Information Advantage is fading away following its acquisition by Sterling Software, leaving Business Objects, Cognos Software and Brio Technology as chief rivals. Its new worries are the likes of Broadvision and Epiphany.
More than 50% of its revenue comes from its e-business engagements. The opportunity is that companies extending their internet networks beyond the intranet offer a much greater revenue opportunity because of the additional users they support. 24% of revenue came from new customers. The company claims 840 customers in total. It said 70% of revenue came from products and 30% from support.
MicroStrategy says it is in the right time and space with the right products to address the huge increase in demand and spending on business intelligence.
In 1997 its biggest sale was a $1m, 1,000-user deal. In 1998 it was a $4m for 15,000 users. And last quarter it won a $52m deal with NCR and several $5m-plus sales, it claims. It won 60 new customers in the quarter up from 34 last quarter. More than 40% of revenue from interface products including Broadcaster, Telecaster and InfoCenter was on e-commerce sales.
